Yes, but only a portion of that $200 is due to material costs. The differential material cost between 32 and 64GB is much less. I suspect that we'll see the iPhone/Touch capacities ratchet up a notch in the coming months with little or no price increase, and 8GB models either discontinued or see a price reduction. Apple could very well use such a plan as its own "stimulus package" to sustain sales in these difficult times.kornchild2002 said:64GB drives are still over $200 when adding to notebooks.